Business to Business Collections
Collecting past due payments from other businesses is very different from collecting debts from consumers.
Using an attorney to collect a business debt is often preferable to using collection agency.
For one thing, using an attorney can often be less expensive. Collection agencies often work on a commission basis. Rates are typically 25%, and if they need to bring in an attorney it often goes up to 40% or more. It does not necessarily cost more to recover a large debt than a small debt, so especially for larger debts using a collection agency might not be cost-effective.
Attorneys also have more tools they can use to collect a debt. They can file lawsuits, obtain judgments, and get liens. These can be much more effective than dunning phone calls from a call center.
Once a business debt has become seriously past due, it’s a good idea to bring in a lawyer sooner rather than later. If a company is having trouble paying its bills, it may be on the road to going out of business. As time goes by there will be fewer assets that can be used to satisfy a debt.
We take care of all aspects of collecting business debts for our clients including:
- Sending demand letters
- Filing and prosecuting lawsuits
- Actions to recover funds